G20, IPL helping hotel industry; surge in demand here to stay: Experts

It is interesting to see that the new business opportunity is fuelled by India's G20 presidency. The G20 meetings have added to the demand in cities that are slated to host key events

With India assuming the G20 presidency, the domestic hotel industry is witnessing a 'bull run," according to a report IN The Economic Times (ET). Key meetings and events associated with the G20, along with the corporate summits and seminars taking place in the country, have led to an increase in demand. This has resulted in higher room rates for hotels located in key cities.

Vikramjit Singh, president of Lemon Tree Hotels, was quoted as saying, "Hotels in India went for a significant rate increase in the quarter beginning October 2022, and rates have hardened further in the current quarter." He further said, "Delhi-NCR (National Capital Region), Mumbai, Hyderabad, and Bengaluru have especially witnessed unprecedented demand, and rates are at an all-time high."

As reported by ET, industry experts claim that the boom in demand is here to stay.

The new business opportunity is fuelled by India's G20 presidency. The G20 meetings have added to the demand in cities that are slated to host key events. Advance bookings are being made in order to facilitate the meetings. Recently, one of the key markets, Bengaluru, was sold out; others are witnessing a surge in tariff rates, said Nikhil Sharma, Eurasia regional director at Wyndham Hotels & Resorts.

It's not just G20

"The Uttar Pradesh Investment Summit (Lucknow, February 10–12) was a huge success and is paving the way for hospitality in that state. Wyndham was one of the host hotels for the summit, and we were sold out during the event," Sharma was quoted in the report.

Bengaluru hosted the February 24–25 meeting of G20 finance ministers and central bank governors. New Delhi will host G20 foreign ministers next week. Similarly, other meetings are planned in various cities until the leaders' summit scheduled in September, the report added.

Rates of five-star hotel rooms have increased by about 20 per cent in key business cities since the last quarter of 2022, said Jaideep Dang, managing director, hotels and hospitality group, India, JLL.

"This is on the back of increased business demand, in general," he added. "Also, G20 delegations and meetings in business cities are contributing to rate and occupancy growth. We believe rates will continue to remain upwardly stable in the next couple of months, supported by the upcoming IPL (Indian Premier League) season and other events before summer sets in."

The men’s IPL will be held during March 31-May 28, while the women’s IPL is scheduled from March 4 to March 26.

Mumbai hosted multiple events last week, which resulted in a squeeze on demand. As a result, premium hotel room rates have risen to Rs 25,000–35,000, according to the report.